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BII to operate under Maybank Indonesia later this year
New name: Private lender PT Bank Internasional Indonesia (BII) chief executive officer and president director Taswin Zakaria (right), independent commissioner Umar Juoro (second right), director Jenny Wiriyanto (left) and director Thila Nadason (second left), converse after an extraordinary shareholders meeting in Jakarta on Monday
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New name: Private lender PT Bank Internasional Indonesia (BII) chief executive officer and president director Taswin Zakaria (right), independent commissioner Umar Juoro (second right), director Jenny Wiriyanto (left) and director Thila Nadason (second left), converse after an extraordinary shareholders meeting in Jakarta on Monday. They agreed during the meeting to change BIIâs name to PT Bank Maybank Indonesia.(Antara/Audy Alwi) (BII) chief executive officer and president director Taswin Zakaria (right), independent commissioner Umar Juoro (second right), director Jenny Wiriyanto (left) and director Thila Nadason (second left), converse after an extraordinary shareholders meeting in Jakarta on Monday. They agreed during the meeting to change BIIâs name to PT Bank Maybank Indonesia.(Antara/Audy Alwi)
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span class="inline inline-center">New name: Private lender PT Bank Internasional Indonesia (BII) chief executive officer and president director Taswin Zakaria (right), independent commissioner Umar Juoro (second right), director Jenny Wiriyanto (left) and director Thila Nadason (second left), converse after an extraordinary shareholders meeting in Jakarta on Monday. They agreed during the meeting to change BII's name to PT Bank Maybank Indonesia.(Antara/Audy Alwi)
Private publicly listed Bank Internasional Indonesia is ready to change its name to Bank Maybank Indonesia this year as part of rebranding backed by its major shareholder Malayan Banking Bhd (Maybank).
The bank's extraordinary shareholders meeting approved on Monday the rebranding, which is expected to take effect either in October or November, its president director Taswin Zakaria said.
Taswin said the next process would be filing the name change proposal with the Law and Human Rights Ministry as well as the Financial Services Authority (OJK).
'There will be a transition phase after the approvals, because rebranding will take money and time, including for all documents related to existing loans,' Taswin told reporters after the meeting.
Taswin said the transformation was part of the shareholders' long-term plan since 2009 to improve the bank's business, which would be supported by a 'stronger' brand in ASEAN and globally.
'We hope the transformation will accelerate the development of corporate culture under Maybank Group,' Taswin said, adding that the bank would also improve its subsidiaries in the long term, such as WOM Finance and BII Finance.
BII's major shareholder, Maybank ' Malaysia's biggest banking group by assets and the fourth-largest in Southeast Asia ' considers the use of its group's name for all of its subsidiaries to be an essential part of strengthening its footing in the emerging region.
Earlier this year, Maybank Group president and CEO Datuk Abdul Farid Alias said BII, as the group's business in Indonesia, which was one of its largest contributors, was expected to rebrand this year and improve lending between 13 and 15 percent.
However, BII, one of the top 10 banks in Indonesia, has filed its revised lending growth with OJK, saying it might only post a surge of between 10.8 and 11 percent in its overall lending in 2015, according to finance director Thilagavathy Nadason.
As of the end of the first half, the bank had posted Rp 108.5 trillion (US$7.72 billion) in loans, which only grew 2.4 percent from Rp 106 trillion in the same period last year due to lackluster economic growth.
'The loan growth slowed down in the first half and it will not change significantly in the remaining second half due to a 27 percent year-on-year [yoy] decline in our global banking segment,' Nadason said.
Nadason said further that the bank expected to decrease its rising gross non-performing loans (NPLs), which surged to 3.8 percent in the first half from 1.5 percent by the end of 2014.
Bank Indonesia sets 5 percent gross NPLs as the threshold for banks before they require 'intensive supervisory' measures from the OJK.
'With the OJK's latest policy on credit restructuring, we hope that our NPLs will decline to below 3 percent by the end of this year,' Nadason said.
BII booked a 13.9 percent increase in net profit to Rp 388 billion in the first half, from Rp 341 billion in the same period last year.
The increase in profit was contributed by a 10.9 percent hike of net interest income to Rp 3.1 trillion in the first half from Rp 2.8 trillion in the same period last year, as well as a slight net-interest margin (NIM) increase to 4.73 percent from 4.48 percent.
